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Small‑business groups report tariffs, supply‑chain delays and immigration enforcement are constraining operations
Summary
Advocates and business groups described price jumps for key inputs, supply delays that blocked completion of small projects and a decline in customer foot traffic in immigrant‑heavy neighborhoods after immigration‑enforcement actions.
Several witnesses described the combined effect of international tariffs, supply‑chain shortages and local immigration enforcement on small businesses and community economies.
Alyssa Ramos of the Black Economic Council of Massachusetts summarized survey responses from member businesses: respondents had to "find new suppliers, increase prices for their customers, decrease product or service offerings, reduce operating hours, laid off staff... couldn't complete a contract, or had to pause or close their business." She shared anecdotes: one respondent reported a microphone system doubling from $2,000 to over $4,000, and LED video panels rising from $700 to $1,300.
Nicole Lobe (BECMA) and Yadi de Jesus (MACDC) said supply delays are increasing labor costs and undermining contractors' schedules. "The order was delayed over 32 days... the single missing item prevented us from properly finishing the structure and passing a final inspection," a construction business example showed.
Advocates also reported reduced foot traffic in immigrant communities after ICE activity: "Communities like New Bedford, Chelsea, East Boston, Lowell, Worcester... are reporting reduced foot traffic and consumer activities due to fear of current ICE raids," de Jesus said. Several witnesses said this effect compounds capital access and staffing challenges.
Why it matters: Firms that depend on imported parts and materials face immediate cost and scheduling shocks that can render small contracts unprofitable; community organizations said these impacts ripple into employment and local purchasing.
Ending: Witnesses asked lawmakers to support supplier development, inclusive procurement and targeted capital for affected firms; several pledged to submit written survey results and case examples to the committee.
